Transport | Aster Classes

Tamilnadu, Samacheer Kalvi, 10th, Social Science, Solutions, Geography, Chapter 5, India: Population, Transport, Communication, and Trade.

I. Choose the correct answer.

Question 1.
The scientific study of different aspects of population is called:
(a) Photography
(b) Demography
(c) Choreography
(d) Population density
Answer:
(b) Demography

Question 2.
The state with highest literacy rate as per 2011 census is ……..
(a) Tamil nadu
(b) Karnataka
(c) Kerala
(d) Uttarpradesh
Answer:
(c) Kerala

Question 3.
Human Development is measured in terms of:
(a) Human Resource Index
(b) Per capita index
(c) Human Development Index
(d) UNDP
Answer:
(c) Human Development Index

Question 4.
……… Transport provides door to door services.
(a) Railways
(b) Roadways
(c) Airways
(d) Waterways
Answer:
(b) Roadways

Question 5.
The length of Golden Quadrilateral superhighways in India is:
(a) 5846 km
(b) 5847 km
(c) 5849 km
(d) 5800 km
Answer:
(a) 5846 km

Question 6.
The length of navigable Inland waterways in India is ……..
(a) 17,500 km
(b) 5000 km
(c) 14,500 km
(d) 1000 km
Answer:
(c) 14,500 km

Question 7.
The National Remote sensing Centre(NRSC) is located at:
(a) Bengaluru
(b) Chennai
(c) Delhi
(d) Hyderabad
Answer:
(d) Hyderabad

Question 8.
The transport useful in the inaccessible areas is ……..
(a) Roadways
(b) Railways
(c) Airways
(d) Waterways
Answer:
(c) Airways

Question 9.
Which of the following is associated with helicopter service?
(a) Air India
(b) Indian Airlines
(c) Vayudoot
(d) Pavan Hans
Answer:
(d) Pavan Hans

Question 10.
The major import item of India is
(a) Cement
(b) Jewells
(c) Tea
(d) Petroleum
Answer:
(d) Petroleum


II. Match the following

Question 1.
Match the Column I with Column II.


Samacheer Kalvi 10th Social Science Guide Geography Chapter 5 India Population, Transport, Communication, and Trade 1
Samacheer Kalvi 10th Social Science Guide Geography Chapter 5 India Population, Transport, Communication, and Trade 2

Answer:
A. (v)
B. (i)
C. (iv)
D. (ii)
E. (iii)


III. Answer the following questions briefly

Question 1.
What is Human Development?
Answer:
It is a process of enlarging the range of people’s choice, increasing their opportunities for education, health care, income and empowerment. It covers a full range of human choices from a sound physical environment to economic, social and political freedom.

Question 2.
What is migration? State its types.
Answer:
Migration is the movement of people across regions and territories. It can be internal (within a country) or international (between the countries). Migration depends on

Push factor: Unemployment and underemployment in rural areas.

Pull factor: higher wages, employment opportunity, industrial development.

Question 3.
Write any four advantages of railways.
Answer:

  1. Railways are the price mode of transport for goods and passengers in India.
  2. They make it possible to conduct varied activities like business, sightseeing and pilgrimage along with transportation of goods over longer distances.
  3. They are suitable for long-distance travel and play an important role in national integration.
  4. They bind the economic life of the country as well as the accelerate the development of the industry and agriculture.

Question 4.
Write a note on Pipeline network transport in India.
Answer:
Pipelines are the very convenient transport to connect oil and natural gas fields, refineries and to the markets.
It can be laid through difficult Terrain as well as under water.
It ensures steady supply of goods and reduces the transhipment loss and delays.

Three important network of pipeline:

  1. Oil fields in upper Assam and Kanpur.
  2. From Salaya in Gujarat to Jalandhar in Punjab.
  3. From Hazira in Gujarat to Jagadispur in Uttar Pradesh

Question 5.
State the major Inland waterways of India.
Answer:
The major inland waters ways of India are :

  1. National Waterway I: It extends between Haldia and Allahabad, measures 1620 km and includes the stretches of the Ganga – Bhagirathi – Hooghly river system.
  2. National Waterway 2: This waterway includes the stretch of the Brahmaputra river between Dhubri and Sadiya a distance of 891 km.
  3. National Waterway 3: This waterway extends between Kollam and Kottappuram in the state of Kerala. It is the first national waterway in the country with 24 hour navigation facilities along its entire stretch of 205 km.

Question 6.
What is communication? What are its types?
Answer:
Communication is a process that involves exchange of information, thoughts , and ideas. lt is categorized into two types.

Personal Communication: Post and telegraph, telephone, mobile phone, short message services, fax, internet, e-mail etc.
Mass Communication: Electronic media-Radio, T.V, internet and print media-News papers.

Question 7.
Define “International trade”.
Answer:
When trade takes place between two countries it is known as international trade.

Question 8.
State the merits of Roadways.
Answer:

  1. Roadways can provide door to door services.
  2. Easy and cheap to construct and maintain. Indian roads are cost-efficient.
  3. The most universal mode of transport. It is used by all sections of people in society.
  4. Can establish easy contact between farms, fields, factories and markets.

IV. Distinguish between

Question 1.
Density of population and Growth of population.
Answer:
Density of Population:

  1. Density of population is the number of persons living per square kilometre.
  2. It is calculated per 1000.
  3. As per 2011 census the average density of population in India is 382 persons living in per sq.km.

Growth of Population:

  1. Growth of population refers to the change in the number of in habitants of a country/territory in a specific period of time.
  2. It is expressed in percentage.
  3. The year 1921 is called the year of Great Demographic Divide.

Question 2.
Persona! communication and Mass communication.
Answer:
Personal communication:

  1. Exchange of communication between the individuals.
  2. Enables the user to establish direct contact.
  3. It includes post and telegraph, telephones, mobile phones, short message service (SMS) fax, Internet, e-mail etc.

Mass communication:

  1. Millions of people get the information at the same time.
  2. Provide information through print media and electronic media.
  3. It includes Radio, Television and Internet. Electronic media, News paper, Magazines, books, journals etc.

Question 3.
Print Media and Electronic Media.
Answer:
Print Media:

  1. Most powerful means of communication.
  2. Many news papers carry information on local national and international events to the people.
  3. Knowledge of reading is essential.

Electronic Media:

  1. Communication to millions of people through electronic gadgets at the same time.
  2. Radio, Television, Internet provide and create awareness on various national policies and programme.
  3. A powerful audio-visual medium.

Question 4.
Roadways and Railways.
Answer:
Roadways:

  1. Highly suitable for short distance services.
  2. Most common mode of transport, easy, cheap to construct and maintain.
  3. Based on the construction and maintenance divided into National Highways, State Highways, District Roads, Village roads, Border roads, International highways, Express ways.
  4. Second longest network in the world.
  5. Door to door services possible

Railways:

  1. Ideal for long distance services.
  2. Construction depend upon the climatic and physical factors like terrain. Costly when compared with roadways.
  3. On the basis of width of the track falls under 4 types, Broad gauge, meter gauge, narrow gauge and light gauge.
  4. Largest in Asia and second largest in the World.
  5. Cannot provide door to door services.

Question 5.
Waterways and Airways.
Answer:
Waterways:

  1. Oldest and Cheapest means of transport.
  2. Most suitable for carrying heavy and bulky materials.
  3. Two types, inland waterways-river and backwaters and canals and oceanic routes connect coastal areas.

Airways:

  1. Modem and costliest means of transport.
  2. Only limited weight can be carried. Cannot carry heavy and bulky materials.
  3. Domestic air sendee within the country and International Airways connect major cities of the World.

Question 6.
internal trade and International trade.
Answer:
Internal trade:

  1. Trade is carried on within the domestic territory.
  2. Land transport plays a major role (Roadways and Railways).
  3. Local currency is used.
  4. Helps to promote a balanced regional growth.

International trade:

  1. Trade is carried on between two or more countries.
  2. Waterways and Airways play a vital role.
  3. Foreign currency is involved.
  4. Helps to promote country’s economy and raise the standard of living

V. Answer the following in a paragraph

Question 1.
What is urbanization? Explain its impacts.
Answer:
The process of society’s transformation from rural to urban is known as urbanization. The level of urbanization of a place is assessed based on the size of population of the towns and cities and the proportion of population engaged in non agricultural sectors. These two are closely linked to the process of industrialization and expansion of the secondary and tertiary sectors of economy.
Impacts of urbanization:

  • Urbanization and population concentration go hand – in – hand and are closely related to each other. A rapid rate of urbanization in a society is taken as an indicator of its economic development.
  • Urbanization is increasing rapidly in the developing countries including India.
  • Rural to urban migration leads to population explosion in urban areas. Metropolitan cities like Mumbai, Kolkatta and Delhi have more population than that can accommodate.
    The following are the major problem of urbanization in India.
  • It creates urban sprawl.
  • It makes overcrowding in urban centres.
  • It leads to shortage of houses in urban areas.
  • It leads to the formation of slums.
  • It increases traffic congestion in cities.
  • It creates water scarcity in cities.
  • It creates drainage problems.
  • It poses the problem of solid waste management.
  • It increases the rate of crime.

Question 2.
Explain the importances of satellite communication in India.
Answer:

  1. The communication through satellites emerged as a new era in the system of communication in our country.
  2. The use of Satellite in getting a continuous and synoptic view of larger area has made this communication system very vital for the country.
  3. Satellite images are used for weather forecasting.
  4. Monitoring of natural calamities.
  5. Surveillance of border areas.
  6. The INSAT (series) is a multipurpose system for telecommunication, meterological observation and for various other programs.
  7. They are used for relaying signals to television, telephone, radio and mobile phone.
  8. And also useful in weather detection, internet and military applications.

Question 3.
Bring out the distribution and density of population in India.
Answer:
The term ‘Population Distribution’ refers to the way the people are spaced over the earth’s surface. The distribution of population in India is quite uneven because of the vast variation ki the availability of resources. The population is mostly concentrated in the regions of industrial centres and the good agricultural lands. On the other hand, the areas such as high mountains and lands thickly forested areas and some remote comers are very thinly populated and some areas are even uninhabited.

Terrain, climate, soil, water bodies, mineral resources, industries, transport and urbanization are the major factors which affect the distribution of population in our country. Population density is a better measure of understanding the variation in distribution of population. It is expressed as number of person per unit area usually per sq.km. According to 2011, the average density of population of India is 382 person per sq.km. India is one of the most thickly populated ten countries of the world. The most densely populated state of India is Bihar and the state with lest population density is Arunachal Pradesh. Among union territories, Delhi is the densely populated one with 11,297 per sq.km, while Andaman and Nicobar Islands have the lowest density of population

Question 4.
Explain the process of measuring Human Development.
Answer:
Dr. Mahabub-ul-haq defined Human Development as “It is a process of enlarging the range of people’s choice, increasing their opportunities for education, health care, income and empowerment. It covers the full range of human choices from a. sound physical environment to economic, social and political freedom”.

Measuring of Human Development (HDI): Human Development Index is a composite index focusing on three basic dimensions of human development.

  1. Health: Life expectancy at birth.
  2. Education: Expected years of schooling for school age children and average years of schooling for the adult population.
  3. Income: Measured by gross national income and per capita income.

Question 5.
Classify and explain the roadways in India.
Answer:

  1. The Indian roads are cost-efficient and the most popular dominant mode of transport
    linking different parts of our country.
  2. Roads stretch across the length of people in society.
  3. It is used by all sections of people in society.
  4. Road network in India is the second-longest in the world accounting for 3,314 millions of km.

Types of Roadways:

1. Village Roads:

  • Village roads link different villages with towns.
  • They are maintained by Village Panchayath.
  • In India village roads run to a length of 26,50,000 kms.

2. District Roads:

  • District roads link the towns with the district headquarters.
  • They are maintained by the Corporations and Municipalities.
  • It is used by all sections of people in the society.
  • In India district roads run to a total length of 4,67,763 kms.

3. State Highways:

  • State Highways links the State capitals with the different district headquarters.
  • These roads are maintained by the State Public Works Department.
  • The State Highways run to a length of 1,31,899 kms. (Ex: Cudalore – Chittor Road).

4. National Highways:

  • National Highways link the State Capitals with the National Capital.
  • They are the primary road system of our country and are maintained by the Central Public Works Department.
  • It runs to a length of 70,548 kms. (Ex: NH47 is a National Highway which connects Tamil Nadu and Kerala)

5. Golden Quadrilateral Super Highways:

  • It is a major road development project launched by the Government of India.
  • It runs to a length of 14,846 kms connecting the major cities of India.
  • The major objective of these roads is providing ‘connectivity’, ‘speed’ and ‘safety’.

6. Expressways:

  • Expressways are the technologically improved high class roads in the Indian Road network.
  • They are six lanes roads. They run to a length of more than 200 kms.
  • New Mumbai – Pune Road is an example for Expressway.

7. Border Road:

  • Border Roads are the roads constructed along the northern and north eastern borders of our country.
  • These roads are constructed and maintained by Border Roads Organization.
  • The Organization has constructed 46,780 km of roads in difficult terrain.

8. International Highways:
International Highways are the roads that link India with neighbouring countries for promoting harmonious relationship with them.


VI. On the outline map of India mark the following

Question 1.
National Highway NH-7.
Answer:

Question 2.
Major seaports in India.
Answer:

Samacheer Kalvi 10th Social Science Guide Geography Chapter 5 India Population, Transport, Communication, and Trade 4

Question 3.
Major International Airports in India.
Answer:
Samacheer Kalvi 10th Social Science Guide Geography Chapter 5 India Population, Transport, Communication, and Trade 5

Question 4.
Densely populated state of India – Uttarpradesh
Answer:
Samacheer Kalvi 10th Social Science Guide Geography Chapter 5 India Population, Transport, Communication, and Trade 4

Question 5.
State of highest literacy in India – Kerala
Answer:
Samacheer Kalvi 10th Social Science Guide Geography Chapter 5 India Population, Transport, Communication, and Trade 4

Question 6.
Railways zones of India.
Answer:


TB Page No. 151
Hots:

Question 1.
What could be the reasons for uneven distribution of population in India?
Answer:

  • Topography, favourable climate, fertility of soils, availability of fresh water, minerals are major geographical factors affecting population density of a region.
  • People prefer to live on plains more than mountains or plateaus and they live more in moderate climates than extreme hot or cold. From the agriculture point of view, fertile lands are preferred.
  • Areas with mineral deposits are more populated.
  • Some social factors that boost the density of population in a region are better housing, education and health facilities.
  • Places with cultural or historical significances are usually populated.
  • Employment opportunities is another attraction for large chunks of the population.

Question 2.
What are the reasons for the rapid growth of population in India?
Answer:

  1. The reasons for the rapid growth of population in India is mainly the , high birth rate and low death rate.
  2. Birth rate is high, death rate declined due to advanced medical facilities and immunization to dreadful diseases.
  3. And also migration of population due to employment, education and industrial development.

TB Page No. 154

Question 3.
The sex ratio in our country is always unfavourable to females. Give reasons.
Answer:
The number of females per thousand men is called the sex ratio.
Reasons:

  • Lesser care of female children.
  • Greater risk to womens’ life especially at the time of child brith.
  • Women are also killed or forced to die by the dowry seekers.
  • Due to illiteracy.
  • Lack of medical facilities for women, etc.

TB Page No. 158

Question 4.
Find out what are the functions of NHAI?
Answer:

  1. National Highway Authority of India was established in 1995.
  2. It is an autonomous body under the ministry of Surface Transport.
  3. Management of all major National Highways and the highways entrusted to it.
  4. Maintenance, development and operation of the National Highways is undertaken by NHAI.

Question 5.
What are the highlights and benefits of the Golden Quadrilateral Highways? Highlights:
Answer:

  • It is the largest Highway project completed in India.
  • It is the fifth largest highway project in the world.
  • The overall length of the Golden Quadrilateral is 5,846 km.
  • The Golden Quadrilateral passes through 13 states of India.
  • It connects four major metropolitan cities of the country in four directions.

Benefits:

  • Provides faster transport networks between major cities and ports.
  • Provides connectivity to major agricultural industrial and cultural centres of India.
  • Provides smoother movement of goods and people within the country.
  • Enables industrial development and job creation in smaller town through access to varied markets.
  • Farmers are able to transport their produce to major cities and towns for sale and export and there is less wastage and spoils.
  • More economic growth through construction and indirect demand for steel, cement, and other construction materials.
  • Giving an impetus to truck transports.

TB Page No. 162

Question 6.
Why is air travel preferred in the North Eastern State?
Answer:
The North Eastern States are mountainous and forested. So construction of roadways or railways is very difficult due to terrains. Air transport has made accessibility easier. So air travel is preferred in the North eastern states.

TB Page No. 165

Question 7.
Find out the major trade blocs which are useful for multilateral trade.
Answer:
Trading blocs are usually groups of countries in specific regions that manage and promote trade activities. Trading blocs lead to trade liberalisation and trade creation between members, since they are treated favourably in comparison to non-members. The World Trade Organisation (WTO) permits the existence of trading bloc provided that they result in lower protection against outside countries than existed before the creation trading bloc.
The most significant trading blocs currently are:

  1. European Union (EU): A customs union, a single market and now with a single currency.
  2. European Free Trade Area (EFTA)
  3. North American Free Trade Agreement (NFATA) between the USA, Canada and Mexico.
  4. Mercosur: A customs union between Argentina, Brazil, Paraguay, Uruguay, and Venezuela.
  5. Association of Southeast Asian Nations (ASEAN)
  6. Association of Free Trade Area (AFTA)
  7. Common market of Eastern and Southern Africa (COMESA)
  8. South Asian Free Trade Area (SAFTA) created in 2006 with countries such as India and Pakistan.
  9. Pacific Alliance: 2013 – a regional trade agreement between Chile, Colombia, Mexico and Peru.

TB Page No. 159
Activity:

Question 1.
Prepare a seminar topic about “Role of Railways in Indian Economy”Key Points:
Answer:

  1. Large scale movement
  2. National integration promotion
  3. Commercialisation of agriculture
  4. Movement of perishable goods
  5. Avoids traffic congestion how?
  6. Engineering marvel
  7. Quiz regarding railways

TB Page No. 165

Question 2.
Collect the countries names and make it as a table of Bilateral trade and multilateral trade countries.
Answer:
India has made bilateral trade agreement with these countries.

Bilateral Trade Countries: U.S.A . China, Hongkong, Singapore, United Kingdom, Germany, Bangladesh.

Multilateral Trade Countries: The members of the SAARC (South Asian Association for Regional Cooperation) Korea, Japan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Afghanistan, Srilanka, U.S.A and United Kingdom.


Samacheer Kalvi 10th Social Science India: Population, Transport, Communication, and Trade Additional Important Questions and Answers

I. Choose the correct answer

Question 1.
…………………. is the second-most populous country next to China.
(a) India
(b) Pakistan
(c) Bangladesh
(d) Nepal
Answer:
(a) India

Question 2.
The fast movement of traffic are established by ……
(a) national highways
(b) Express highways
(c) International highways
Answer:
(a) national highways

Question 3.
As per 2011 census the average density of population of India is …………………. persons per Sq.Km.
(a) 302
(b) 382
(c) 100
(d) 365
Answer:
(b) 382

Question 4.
The ………. have more railways than the Himalayan Mountains.
(a) Northern Plains
(b) Coastal Plains
(c) Deccan Plateau
Answer:
(a) Northern Plains

Question 5.
The Grand Trunk Road extends from …………………. to ………………….
(a) Delhi to Mumbai
(b) Amritsar to Kolkatta
(c) Mumbai to Thane
(d) Srinagar to Amritsar.
Answer:
(b) Amritsar to Kolkatta

Question 6.
The cheapest mode of transport is …….
(a) roadways
(b) railways
(c) waterways
Answer:
(c) waterways

Question 7.
…………………. are multi-lane good quality highways for high speed traffic.
(a) National Highways
(b) State highways
(c) Border roads
(d) Express highways.
Answer:
(d) Express highways.

Question 8.
Trade carried on within the domestic territory of a country is known as …… trade.
(a) External
(b) Foreign
(c) Internal
Answer:
(c) Internal

Question 9.
The …………………. railway accounts for the longest route length.
(a) Northern Railways
(b) Central Railway
(c) Eastern railway
(d) Southern Railway
Answer:
(a) Northern Railways

Question 10.
A cost-efficient and most popular mode of transport in our country is ……..
(a) Airways
(b) Roadways
(c) Waterways
Answer:
(b) Roadways

Question 11.
India is the …………………. largest ship owning country in Asia.
(a) First
(b) Second
(c) Third
(d) Fourth
Answer:
(b) Second

Question 12.
The costliest and most modem means of transport is ……..
(a) Air transport
(b) Road transport
(c) Rail transport
Answer:
(a) Air transport

Question 13.
The is the first communication Satellite in INSAT Series.
(a) G.SAT
(b) EDUSAT
(c) INSAT-IB
(d) Kalpana-1
Answer:
(c) INSAT-IB

Question 14.
The major ports are managed and controlled by …….
(a) National Ports Corporation
(b) Port Trust of India
(c) Indian Airlines
Answer:
(b) Port Trust of India

Question 15.
Indian space Research organisation was established in the year:
(a) 1959
(b) 1969
(c) 1979
(d) 1996
Answer:
(b) 1969


II. Match the following

Question 1.
Match the Column I with Column II.

Answer:
A. (v)
B. (iv)
C. (i)
D. (iii)
E. (ii)

Question 2.
Match the Column I with Column II.


Samacheer Kalvi 10th Social Science Guide Geography Chapter 5 India Population, Transport, Communication, and Trade 10
Answer:
A. (iii)
B. (iv)
C. (v)
D. (i)
E. (ii)

III. Answer the following questions briefly

Question 1.
Describe the three population density zones of India.
Answer:
The three population density zones of India are :

  1. High-density zone: The Northern plains above 500 people per sq.km. Northern plains and Kerala in the. South.
  2. Moderate or Medium density zone: Mountain region 250-500 people per sq.km. Ex. Assam and Peninsular states.
  3. Low-density zone: Plateau region below 250 people per sq.km. Ex. Jammu and Kashmir, Sikkim, Arunachal Pradesh.

Question 2.
What are the reasons for the uneven distribution of population in India?
Answer:
The uneven distribution of population in the country is the result of several factors such as physical, socio-economic and historical factors.

Physical factors: Relief, climate, water, natural vegetation, minerals and energy resources.

Socio-economic factors: Religion, culture, political issues, economy, human settlements, transport network, industrialization, urbanization, employment opportunity etc.

Question 3.
What is the major objective to develop the Super Highways?
Answer:
The major objective to develop the Super Highways is to reduce the time and distance between
the megacities of India facilitating the fast movement of traffic.

Question 4.
Which phase period in population growth of India is often referred as period of population explosion?
Answer:
During the third phase (1951-1981) the population of India grew from 361 million in 1951 to 683 million in 1981. Growth rate in this period is almost doubled. So this period (1951-1981) is often referred as the period of “population explosion”.

Question 5.
State some problems of road transport in our country.
Answer:

  1. Distribution of road is not uniform in the country.
  2. Keeping in view the volume of traffic and passengers, the road network is inadequate.
  3. About half of the roads are unmetalled and this restricts their usage during the rainy season.
  4. The roadways are highly congested in cities.
  5. Poor maintenance is also a big problem.

Question 6.
What are the four major shipyards in India?
Answer:
India as four major shipyards:

  1. Hindustan shipyard – Vishakapatnam
  2. Garden Reach workshop – Kolkata
  3. Mazagaon Dock – Mumbai
  4. Kochi shipyard – Kochi

Question 7.
State the highlights of India’s foreign trade policy since 2004.
Answer:

  1. Merchandise trade has been doubled.
  2. Thrust is given for employment generation; especially in semi-urban and rural areas.
  3. Trade procedure is simplified and transaction cost is reduced.
  4. Special focus is given to make India a global hub.
  5. A new scheme called Vishesh Krishi Upay Yojna has been introduced to boost exports of fruits, vegetables, flowers and minor forest products.

Question 8.
Mention the services provided by the Indian postal system in India.
Answer:
Pcstai system is one among the personal communication system. The postal service was open to the public in the country in 1837.

  1. Collecting and delivering mail is the primary function of the postal department.
  2. It introduced Quick Mail Service in 1975 on the basis ofPIN code (1972)
  3. The premium products include the Money order. E-money order, Speed post. Express parcel post, Business post, Media post, Retail post, Data post, Satellite post, Greeting post, Speed net and Speed passport services,

Question 9.
What are the advantages of communication network?
Answer:

  1. It has enhanced the efficiency of communication. Because it enables quick exchange of information with people any where in the world.
  2. It leads to enormous growth of trade.
  3. It helps the government to tackle various socio – economic problems in the society.
  4. It improves the quality of human life.
  5. It opens the door to the information age.
  6. It promotes Edusat programs.
  7. It plays a significant role in the economic and social growth of our country.

Question 10.
Write the full form of STD, ISD, PCO, Internet.
Answer:

  • STD – Subscriber Trunk Dialing
  • ISD – International Subscriber Dialing
  • PCO – Public Call Office
  • Internet – Inter connected network.

Question 11.
What are major ports along the West Coast and East Coast?
Answer:
West Coast Ports :

  1. Kandla,
  2. Mumbai,
  3. Jawahar Lal Nehru,
  4. Marmagoa,
  5. New Mangalore and
  6. Cochin East Cost Ports:
    1. Tuticorin,
    2. Chennai,
    3. Ennore,
    4. Vishakhapatnam,
    5. Paradip,
    6. Haldia and
    7. Kolkota.

Question 12.
Name the major ports on the East coast and on the West Coast of India.
Answer:
There are 13 major ports in India. They are administered by the Central Government.

  1. The major ports on the East coast are Kolkata, Haldia, Paradip,Visakhapatnam, Chennai, Ennore and Tuticorin.
  2. The major ports on the West Coast are Kandla, Mumbai, Nhava Seva (Jawaharial Nehru Port), New Mangalore, Marmagao and Kochi.

Question 13.
Write a short note on Internet.
Answer:

  1. Internet is a vast network of computers, Internet means interconnected network of net , works.
  2. It connects many of the world’s business institutions and individuals.
  3. It enables computer users throughout the world to send and receive messages and information in a variety of forms.
  4. It is fully a multimedia based system with capacity to deliver pictures, images, video and audio.
  5. The basic services of internet are e-mail. The World Wide Web and Internet Phone.

IV. Distinguish between

Question 1.
Exports and Imports.
Exports:

  1. Goods and services sold for foreign currency.
  2. Major exports of India are tea, ores and minerals, marine products, textiles etc.
  3. Value of exports are more than the value of imports favourable balance of trade.
  4. India exports goods to nearly 190 countries of the world.

Imports:

  1. Goods and services bought from overseas producers.
  2. Major imports are petroleum products, gold, telecom instruments.
  3. Value of imports exceeds value of exports unfavourable balance of trade.
  4. Imports we get from nearly 140 countries.

Question 2.
Low Density and High Density of population.
Answer:
Low Density of Population:

  1. Areas that have 150 to 300 persons living per sq.km.
  2. Extreme climate, high mountains, remote areas, forested regions have low density of population.
  3. In India Arunachal Pradesh, Sikkim, Mizoram, Andaman and Nicobar islands are some states with low population density.

High Density of Population:

  1. Areas that have 500 to 1000 persons living per sq.km.
  2. Favourable climate, plains, employment opportunities, industrial centres area have high density of population.
  3. Punjab, Tamil Nadu, Uttar Pradesh and Kerala are the states with high population density.

Question 3.
National and State Highways.
Answer:
National Highways:

  1. Connects Capitals of States, major ports, rail junctions, industrial and tourist centres.
  2. Ministry of Road transport and Highways of India is responsible development and maintenance.
  3. Runs to a length of 1,01,011 kms as of 2016.

State Highways:

  1. Link important cities, towns and district head quarters within the State and connect them with national highways or highways of neighbouring states.
  2. Administered and financed by state Governments.
  3. Runs to the length of 1,76,166 kms as of 2016.

Question 4.
Domestic and International Airways.
Answer:
Domestic Airways:

  1. Fly within the boundaries of the country.
  2. Indian Airlines provides the domestic air services. NACIL (I)
  3. There are about 80 domestic airports and about 25 civil enclaves at defence air fields.

International Airways:

  1. Fly across the world and connect major cities of the world.
  2. Air India provides international air services. NACIL (A)
  3. There are 19 designated international airports in the country.

Question 5.
Harbour and Port.
Answer:
Harbour:

  1. Extensive stretch of deep water near the seashore.
  2. Vessels can anchor securely.

Port:

  1. Commercial part of a harbour.
  2. Facility of loading and unloading of goods and space for the storage of cargo
  3. Cuddalore, Ennore.

Question 6.
Birth and Death.
Answer:
Birth Rate:

  1. No. of live Births per 1000 people in a year.
  2. Also known as Nationality rate.

Death Rate:

  1. No. of Deaths per 1000 people in a year.
  2. Also known as Mortality rate.

V. Answer the following in a paragraph

Question 1.
What is the importance of railway transport?
Answer:

  1. The Indian Railways have been a great integrating force for more than 150 years.
  2. They have a network of about 7,112 stations spread over a route length of 66,687 km with a fleet of 11,122 locomotives, 70,241 passenger coaches and 2,54,000 wagons.
  3. Railways are the prime mode of transport for goods and passengers in India.
  4. They make it possible to conduct varied activities like business, sightseeing and pilgrimage along with transportation of goods over longer distances.
  5. They are suitable for long distance travel and play an important role in national integration.
  6. They bind the economic life of the country as well as accelerate the development of the industry and agriculture.
  7. The Indian Railways is the largest public sector undertaking in the country. The first train streamed of from Mumbai to Thane in 1853, covering a distance of 34 km.

Question 2.
What do you mean by Census? How it is useful?
Answer:

  1. Population census is the total process of collecting, compiling, analyzing or otherwise disseminating demographic, economic and social data pertaining at a specific time, of all persons in a country or a well defined part of a country.
  2. Census is being taken in an interval of ten years.
  3. The data collected through the census are used for administration, planning, policy making, management and evaluation of various programmes by the government.
  4. In India 1st census was carried out in the year 1872.
  5. But the first complete and synchronous census was conducted in 1881 The 2011 census represents the fifteenth census of India.

Question 3.
Describe the importance of pipelines in India. Name three important networks of pipelines transportation in the country.
Answer:
Pipeline transport network is a new arrival on the transportation of India.

  1. Transport of crude oil, petroleum products and natural gas from oil and natural gas fields to refineries, fertiliser factories and big thermal power plants. ‘
  2. Even solids can be transported through pipelines when converted into slurry.
  3. The far inland locations of refineries and gas based fertiliser plants could be transported.
  4. Initial cost of lying pipelines is high but subsequent running costs are tninimal.
  5. It rules out trans-shipment losses or delays.

Three important networks of pipeline transportation in the country:

  • From oil field in the upper Assam to Kanpur (UP), via Guwahati, Baraumi and Allahabad.
  • From Salaya in Gujarat to Jalandhar in Punjab. Via Viramgam, Mathura, Delhi and Sonipat.
  • Gas pipeline from Hazira in Gujarat connects Jagdishpur in UP, via Vijaipur in MP.

Question 4.
What are the problems created by over population in India?
Answer:
In India, growing pressure of Population on resource base, created many socio economic, cultural, political, ecological and environmental problems. The population problem varies in space and time and differ from region to region.

Major issues created by the over population are – overcrowding, unemployment and under employment, low standard of living mal nutrition, mismanagement of natural and agricultural resources, unhealthy environment etc.

Question 5.
Write about the significance of Indian Railways.
Answer:

  1. Indian Railway system is the main artery of the country’s inland transport.
  2. Indian Railway network is the largest in Asia and second largest in the world.
  3. Railways are considered as the back bone of the surface transport system of India.
  4. Significances: It caters to the needs of large scale movement of traffic both for freight and passengers, there by contributing to economic growth.
  5. It promotes trade, tourism, education etc.
  6. It promotes national integration by bringing people together.
  7. Railways help in the commercialization of the agricultural sector by facilitating the quick movements of perishable goods.
  8. It provides invaluable service by transporting raw materials to industries and finished goods to market.

Question 6.
What is trade? What are the two types of trade? State its components:
Answer:

  1. Trade is an act (or) process of buying selling or exchanging of goods and services. Trade in general is of two types. They are Internal trade and International trade.
  2. Internal Trade: Trade carried on within the domestic territory of a country.
  3. International trade: Trade carried on between two or more countries.
  4. Exports and imports are the two components of international trade.
  5. The difference between value of exports and imports is called balance of trade.
  6. If the value of exports exceeds the value of imports trade is said to be favourable balance of trade.
  7. If the value of Imports exceeds value of exports it is said to be unfavourable balance of trade.
  8. The value of currency of a country depends upon the balance of trade of that country.

VI. On the outline map of India mark the following

Question 1.
North-South corridor
Answer:
Samacheer Kalvi 10th Social Science Guide Geography Chapter 5 India Population, Transport, Communication, and Trade 7

Question 2.
East-West corridor
Answer:
Samacheer Kalvi 10th Social Science Guide Geography Chapter 5 India Population, Transport, Communication, and Trade 7

Question 3.
Head quarters
of Indian Railway – Delhi.
Answer:
Samacheer Kalvi 10th Social Science Guide Geography Chapter 5 India Population, Transport, Communication, and Trade 5


Chapter 4: Business Services

Select the correct option and rewrite the sentence.

1. Door to door service is provided by _________ transport.

railway

road

air

Solution: 

Door to door service is provided by road transport.

2. __________ creates time utility.

Warehouse 

Transport 

Government

Solution: 

Warehouse creates time utility.

3. _____________ warehouses provide facilities for perishable commodities.

Bonded

Cold storage

Government

Solution: 

Cold storage warehouses provide facilities for perishable commodities.

4. _____________  policy covers all types of risks of a vessel while it is anchored at the port for a particular period of time.

Port risk

Voyage

Floating

Solution: 

Port risk  policy covers all types of risks of a vessel while it is anchored at the port for a particular period of time.

5. Principle of ___________ is not applicable to life insurance.

insurable interest 

utmost good faith

indemnity

Solution: 

6. Principle of indemnity is not applicable to life insurance.

Match the pairs.

Group ‘A’Group ‘B’
A) Air Transport1) Time utility
B) Warehousing2) Intangible in nature
C) Money remittance3) Fast mode of transport
D) Pipeline Transport4) April, 2019
E) Business Service5) Western Union Money Transfer
 6) Fixed deposit account
 7) Petroleum and gas
 8) Tangible
 9) Place utility
 10) Savings account

Solution: 

Group ‘A’Group ‘B’
A) Air Transport3) Fast mode of transport
B) Warehousing1) Time utility
C) Money remittance5) Western Union Money Transfer
D) Pipeline Transport7) Petroleum and gas
E) Business Service2) Intangible in nature

Give one word/phrase/term for the following sentence.

1. These warehouses are owned, managed and controlled by central and state governments or public authorities.

Solution: 

These warehouses are owned, managed, and controlled by central and state governments or public authorities. – Government warehouse

An art of exchanging ideas, facts, information, etc . from one person or entity to another.

Solution: 

An art of exchanging ideas, facts, information, etc. from one person or entity to another. – Communication

A rail system in which the track consists of a single rail or a beam.

Solution: 

A rail system in which the track consists of a single rail or a beam. – Monorail

A transport system used to carry petroleum and gases.

Solution: 

A transport system used to carry petroleum and gases. – Pipeline transport

A ministry that looks after the development of surface transport throughout the country.

Solution: 

A ministry that looks after the development of surface transport throughout the country. – Ministry of Road Transport and Highways

State whether the following statement are true or false.

Business services are important for the growth of business.

True

False

Current Account is opened by salaried persons.

True

False

NEFT stands for National Electric Fund Transfer.

True

False

Air transport is the cheapest mode of transport.

True

False

The Internet is the global system of interconnected computer networks that use the Internet protocol suite to link devices worldwide.

True

False

Find the odd one.

1. Primary credit co-operative society

state co-operative bank

district co-operative bank

ex-change bank

2. NABARD

RBI

SIDBI

EXIM

3. Endowment policy

Whole life policy

Money back policy

Blanket policy

Complete the sentence.

1. The term bank comes from the French word _________

Solution: 

The term bank comes from the French word Banco 

2. _________ warehouses provide facilities for perishable commodities

Solution: 

Cold Storage warehouses provide facilities for perishable commodities

3. In ________ policy, several ships belonging to one owner are insured under the same policy.

Solution: 

In fleet policy, several ships belonging to one owner are insured under the same policy.

4. _______ banking refers to the use of banking services with the help of mobile phones.

Solution: 

Mobile banking refers to the use of banking services with the help of mobile phones.

Select the correct option and complete the following table.

(RTGS, SIDBI, apex financial institution in banking industry of country, recurring deposit, long term loans)

Group AGroup B
1 _________fund transfer on real time and gross basis
2. loans to meet long term capital requirements________
3 ____________Account operated by salaried and businessmen both.
4. Central bank_____________
5 _____________Principal financial institution for MSMEs

Solution: 

Group AGroup B
1 RTGSfund transfer on a real-time and gross basis
2. loans to meet long term capital requirementslong term loans
3 Recurring DepositAccount operated by salaried and businessmen both
4. Central bankapex financial institution in the banking industry of the country
5 SIDBIPrincipal financial institution for MSMEs

Answer in one sentence.

What is debit card?

Solution: 

Most of the banks nowadays offer debit cards as soon as the account is opened by the account holder. Through debit card payments, the amount gets deducted from the account holder’s account.

What is ‘subject matter’ in insurance?

Solution: 

Subject matter refers to the subject or entity i.e life, property, cargo or ship, etc. which is insured against which the policy is taken.

What is a government warehouse?

Solution: 

These warehouses are owned, managed, and controlled by central and state governments or public authorities. It is difficult for small farmers, businessmen, traders to own a warehouse, so these government warehouses assist them in storing their goods at a nominal charge.

What is air transport?

Solution: 

Air transport carries the goods and passengers through airways by using different aircrafts like passenger aircrafts, cargo aircraft, helicopters etc. This is the fastest mode of transport but it does not provide door to door service.

What is communication?

Solution: 

Communication is an art of exchanging ideas, facts, information, etc. from one person or entity to another. The process of passing any information from one person to another with the help of some medium is termed as communication.

Correct the underlined word and rewrite the following sentence.

1.Overdraft facility is available for savings bank account holders.

Solution: 

Overdraft facility is available for Current bank account holder.

2. Services are tangible in nature.

Solution: 

Services are Intangible in nature.

3. Insurance helps to maximize the risks in the business.

Solution: 

Insurance helps to minimize the risks in the business.

4.The foreign bank is the apex financial institution in the banking industry in the country.

Solution: 

The central bank is the apex financial institution in the banking industry in the country.

5. RTGS stands for Reasonable Time Gross Settlement.

Solution: 

RTGS stands for real Time Gross Settlement.

6. Arrange in proper order.

Claim, Accident, Taking the policy, Compensation

Solution: 

Taking the policy, Accident, Claim, Compensation

7. Email, Inland letter, Courier

Solution: 

Inland letter, Courier, E-mail

Explain the following term/concept.

Transport

Solution: 

Transportation is the movement of people, animals, and goods from one location to another location or it can be defined as a means of carrying goods and people from one place to another place.

Communication

Solution: 

Communication is an art of exchanging ideas, facts, information, etc. from one person or entity to another. The process of passing any information from one person to another with the help of some medium is termed as communication. Communication is a very simple process where the message is being transferred from a sender to the receiver. The receiver after receiving the message understands it in the desired form and then acts accordingly.

Banking

Solution: 

The term Bank comes from the French word ‘Banco’ which means a ‘bench’. In earlier days, money-lenders used to display coins of different currencies in big heaps or benches or tables for the purpose of lending or exchanging.

A bank is a financial institution which deals with deposits and advances and other related services. Bank provides various services related to money or financial requirements of consumers.

Insurance

Solution: 

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The insured has to pay a certain fixed sum of money on timely basis to the insurer.

Warehousing

Solution: 

Warehousing refers to the storage of goods and consists of all those activities which are connected with the storage and preservation of goods. It is a means of storing goods. Warehousing can be defined as a group of activities connected with the storing and preserving of stored goods from the time of production until the time of consumption.

Study the following case/situation and express your opinion.

Ms.Harshali has started a new business two years ago. Her customers are located in different parts of the country and hence they are directly depositing bill amounts in her business account. At the same time, she used to pay various payments from this account only.

i) Identify the Type of account maintained by Ms. Harshali.

ii) Suggest anyone modern way of money transfer to Ms.Harshali.

iii) What kind of facility does she get on her bank account?

Solution: 

The type of account maintained by Ms. Harshali is the current account.

NEFT stands for National Electronic Fund Transfer. Under this system, funds are transferred electronically from one branch to another branch or one bank to another bank in the country. The client has to give details of the NEFT code of branch and account number of a beneficiary to whom the money is to be transferred.

1. An overdraft facility is available for the current account.
2. For the current account, banks provide a statement of account every month.

Mr. Jagan is a salaried person. He wants to take policy for his two children which assures them protection as well as completes their financial needs once they become major by age.

i) Suggest him a policy which can satisfy the requirements of his children.

ii) Who are beneficiaries of policy?

iii) In the above case which principle is involved?

Solution: 

Mr. Jagan, a salaried person should take “Child Insurance Policy” to satisfy the financial requirements of his children.

In a child insurance policy, children of the insured person are the beneficiaries.

In the above case, the principle of insurable interest is involved.

Mr. Sharan is a successful manufacturer. He is having production units at various locations. He is having multiple production units, he has a large stock of raw material and finished goods. He is worried about safeguarding goods from any unwanted financial loss. He also requires transferring raw material and finished goods from one unit to another but does not have any facility for that. He also requires funds for expansion.

i) Name the service which will help him to safeguard goods from any damage?.

ii) Which service will help him to remove the difficulty of the place?

iii) From which service sector will he get financial support?

Solution: 

Warehousing is the service that helps Mr. Sharan to safeguard his goods from any damage.

Transport service will help Mr. Sharan to remove the difficulty of the place.

Mr. Sharan will get financial support from the Banking sector.

Mr. Amit is a businessman. He has his own factories in Pune and Nashik. He lives in Pune with his wife and 2 daughters aged 5 and 8 years.

i) Can Mr. Amit take a life insurance policy for his wife and 2 children?

ii) Can Mr. Amit take a marine insurance policy for his factories?

iii) Which type of insurance should Mr. Amit take for protecting his factories from loss due to fire?

Solution: 

Mr. Amit can take whole life policy or term insurance policy for his wife and child insurance policy or money back policy for his daughters.

Mr. Amit cannot take marine. insurance policy for his factories.

Mr. Amit can take Floating Fire Insurance Policy for protecting his factories at Pune and Nashik.

Distinguish between.

Duty Paid Warehouse and Bonded Warehouse

Solution: 

Duty paid Warehouses Bonded Warehouses
Meaning: If an importer faces any problem in the transportation of goods, after making payment of duty, then goods can be stored at a duty-paid warehouse.Bonded warehouses are licensed by the government to accept imported goods for storage until the payment of customs duty.
Control: All duty paid warehouses are public warehouses that are available to all importers.These warehouses work under the control of customs authorities.
Classification: Duty paid warehouses help the importer as proper care of goods is taken, processing of goods can be done like sorting, re-packing, etc.The goods are held in bond and cannot be withdrawn without paying the customs duty.
Location: These are located near the port & dock area.These are located near the dock area and if an importer is unable or unwilling to pay customs duty immediately then he can store the goods in a bonded warehouse.
Used : Such warehouses are more useful for the re-export of the goods.The importer can withdraw the goods in installments by paying the customs duty proportionately.

Central Bank and Commercial Bank

Solution: 

Central BankCommercial Bank
1. Function: The main function is to accept deposits from the public for lending to industry and othersThe main function of the central bank (RBI) is to regulate the money supply in the country.
2. Printing of Currency: The commercial banks cannot print currencyThe central bank can print currency notes.
3. Acceptance of Deposits: The commercial bank accepts deposits from the publicThe Central Bank does not accept deposits from the public.
4. Loans Commercial banks provide loans to industry and commerce.The Central bank provides loans to bankers and financial institutions
5. Ownership: It can be owned by private and/or by government agencies.It is owned and controlled by the government of India
6. Number of Banks: There are many commercial banks in India.There is only one Central Bank (RBI) in India.
7. Monetary policy The commercial banks do not frame any monetary policy The commercial bank does not keep a check on the central bankThe Central Bank frames the monetary and credit policy.

Road Transport and Air Transport

Solution: 

Road TransportAir Transport
1. Speed: Road transport has limited speed due to bad road conditions, accidents, etc.It is the fastest mode of transport.
2. Carrying capacity: It has limited carrying capacityIt has limited carrying capacity
3. Cost: It requires limited capital investment in terms of construction of roads, vehicles, and their maintenance.It uses airways which are natural and hence, there is no cost involved. However the huge cost of construction of aircraft involved. These costs are way high compared to other modes of transport.
4. Distance: Recommended for a short distance.Suitable for long-distance.
5. Charges: Transport charges are not fixed due to high due to increased fuel pricesThe transport charges is very high.
6. Door to door service: It provides door to door services.It does not provide door to door services.
7. Means of Transport: It uses animals, animal carts, motor-cycles, three, and four-wheelers.It uses aircraft, helicopters, jets, etc.
8. Suitability: It is suitable for transporting goods in relatively smaller quantities for a short distance.It is suitable for transporting lightweight perishable and valuable goods to any part of the world.
9. Safety: It provides limited safety to goods from the sun, rain, wind, etc.Goods are safe as they are specially packed.
10. Accidents: Chances of accidents are more due to poor road conditions and negligent driversChances of accidents are less because of maintenance and expert pilots.
11. Ownership: Ownership is in the hands of private parties as well as the government.It is owned by both the private sector as well as the public sector.

Life Insurance and Marine Insurance

Solution: 

Life InsuranceMarine Insurance
1. Meaning: A contract where by the insurance company undertakes to pay a certain sum of money either on death or maturity (whichever is earlier) for a consideration (premium)A contract whereby the insurance company undertakes to pay compensation to in insured in case of loss to him due to dangers (perils) of the sea.
2. Policy taken by: It can be taken by an individual for his own life or for his family members.It can be taken by exporters, importers, and shipping companies, etc.
3. Subject matter: In life insurance, the life of the insured is a subject matterIn Marine insurance, goods in the ship, cargo, and freight is the subject matter.
4. Insurable interest: It must exist at the time of contractIt must exist at the time of contract and also at the time of loss.
5. Tenure: The policy can be issued for any number of years, even until the death of the assured.It is generally for a short period and may range from one month to a year. Normally it does not exceed one year.
6. Compensation: It is paid either on death or maturity whichever is earlier.It is paid only if there is a loss causing event during the term of the policy.
7. Principle of Indemnity: It is not applicable as human life cannot be valued in terms of money for calculating the actual loss.It is applicable as the insurance company compensates for the financial loss and the insured is brought back to the same financial condition that he was before the event.
8. Number of policies: Insured can take any number of policies on the same life. Compensation is paid on all the policies.Generally, only one policy can be taken. However, double insurance is possible. However, compensation does not exceed the actual loss.
9. Beneficiary: The beneficiary can be insured (if he survives the selected term) or else the nominee or the legal heir on the death of the assured.The beneficiary is the insured person or company.
10. Surrender of policy: The policy can be surrendered before the expiry of the term subject to certain conditions.It cannot be surrendered.

Savings Account and Current Account

Solution: 

Savings AccountCurrent Account
1. Meaning: It is that account which is opened by individuals in order to save a part of their income.It is that account which is maintained by businessman and others who have regular bank transactions.
2. Withdrawals: Customers can withdraw either by cheques or by withdrawal slips.Customers can withdraw money by cheques.
3. Documentation: The bank gives a passbook, cheque book and pay-in-slip book to the customers.The bank gives a passbook, cheque book, statement of account, and pay-in-slip book to the customers.
4. Who takes it: It is suitable for fixed income groups, wages, or salary earners.It is suitable for traders, businessmen, firms, or institutions.
5. Restrictions: The customer has certain restrictions on withdrawals.There are no restrictions on the operation of a current account as long as there is balance in the account.
6. Interest rate: The interest rate is lowNormally interest is not given
7. Nature of Account: It is of continuous NatureIt is of continuous Nature
8. Facilities: No overdraft facility is given.Temporary overdraw facility is given

Life Insurance and Fire Insurance

Solution: 

Life InsuranceFire Insurance
1. Meaning: A contract whereby the insurance company undertakes to pay a certain sum of money either on death or maturity (whichever is earlier) for a consideration (premium)A contract in which the insurer promises to pay compensation to the insured if something happens to the subject matter due to fire or related events.
2. Policy took by: It can be taken by an individual for his own life or for his family members.It can be taken by an individual for their properties or by the businessman. For their goods, properties business liabilities.
3. Subject matter: In life insurance, the life of the insured is a subject matterIn Fire insurance, the goods and assets or property of the insured is the subject matter.
4. Insurable interest: It must exist at the time of contractIt must exist both at the time of contract and also at the time of loss.
5. Tenure: The policy can be issued for any number of years, even until the death of the assured.It is generally for a short period like one year.
6. Compensation: It is paid either on death or maturity whichever is earlier.It is paid only if there is a loss due to fire during the term of the policy
7. Principle of Indemnity: It is not applicable as human life cannot be valued in terms of money for calculating the actual loss.It is applicable as the insurance company compensates for the financial loss and the insured is brought back to the same financial condition that he was before the event.
8. Number of policies: Insured can take any number of policies on the same life. Compensation is paid on all the policies.Generally, only one policy can be taken but double insurance is possible. However, compensation does not exceed the actual loss.
9. Beneficiary: The beneficiary can be insured (if he survives the selected term) or else the nomine or the legal heir on the death of the assured.The beneficiary is the insured who has insured the property or goods
10. Surrender of policy: The policy can be surrendered before the expiry of the term subject to certain conditions.It cannot be surrendered.

Road Transport and Rail Transport

Solution: 

Road TransportRail Transport
1. Speed: Road transport has limited speed due to bad road conditions, accidents, etc.It has considerable speed since it runs on tracks which rarely gets disturbed
2. Carrying capacity: It has limited carrying capacityIt has a huge carrying capacity
3. Cost: It requires limited capital investment in terms of construction of roads, vehicles, and maintenance.The cost of construction of trains, railway tracks is high. Also, the maintenance of trains, tracks, and stations is high.
4. Distance: Recommended for a short distance.Recommended for both short and long-distance.
5. Charges: Transport charges are not fixed due to high due to increased fuel pricesTransport charges are relatively low and are fixed according to the distance.
6. Door to door service: It provides door to door services.It does not provide door to door services
7. Means of Transport: It uses animals, animal carts, motor-cycles, three, and four wheelers.It uses passenger trains and goods trains.
8. Suitability: It is suitable for transporting goods in relatively smaller quantities for a short distance.It is suitable for transporting heavy goods in large quantities over long distances.
9. Safety: It provides limited safety to goods from the sun, rain, wind, etc.Goods are kept in locked wagons which provide protection against sun, wind, rain, etc.
10. Accidents: Chances of accidents are more due to poor road conditions and negligent driversChances of accidents are less because of one-way track and good signal system.
11. Ownership: Ownership is in the hands of private parties as well as the government.Ownership is in the hands of the Government.

Rail Transport and Air Transport

Solution: 

Rail TransportAir Transport
1. Speed: It has considerable speed since it runs on tracks which rarely gets disturbedIt is the fastest mode of transport.
2. Carrying capacity: It has a huge carrying capacityIt has limited carrying capacity
3. Cost: The cost of construction of trains, railway tracks is high. Also, the maintenance of trains, tracks, and stations is high.It uses airways which are natural and hence, there is no cost involved. However the huge cost of construction of aircraft involved. These costs are way high compared to other modes of transport.
4. Distance: Recommended for both short and long-distance.Suitable for long-distance.
5. Charges: Transport charges are relatively low and are fixed according to the distance.The transport charges is very high.
6. Door to door service: It does not provide door to door servicesIt does not provide door to door services.
7. Means of Transport: It uses passenger trains and goods trains.It uses aircraft, helicopters, jets, etc.
8. Suitability: It is suitable for transporting heavy goods in large quantities over long distances.It is suitable for transporting lightweight perishable and valuable goods to any part of the world.
9. Safety: Goods are kept in locked wagons which provide protection against sun, wind, rain, etc.Goods are safe as they are specially packed.
10. Accidents: Chances of accidents are less because of one-way track and good signal system.Chances of accidents are less because of maintenance and expert pilots.
11. Ownership: Ownership is in the hands of the Government.It is owned by both the private sectors as well as public sector.

Current Account and Fixed Deposit Account.

Solution: 

Current AccountFixed Deposit Account
1. Meaning: It is that account which is maintained by businessman and others who have regular bank transactions.It is that account where a fixed sum of money is deposited for a fixed period.
2. Withdrawals: Customers can withdraw money by cheques.  Customers cannot withdraw during the specified period.
3. Documentation: The bank gives a passbook, cheque book, statement of account, and pay-in-slip book to the customers.  The bank gives a fixed deposit receipt to the customers.
4. Who takes it: It is suitable for traders, businessmen, firms, or institutions.  It is suitable for any person with temporarily idle cash.
5. Restrictions: There are no restrictions on the operation of a current account as long as there is balance in the account.  The amount becomes due on the expiry of the fixed period. If withdrawn earlier, then the rate of interest will be less than applicable.
6. Interest rate: Normally interest is not given  The interest rate is higher, longer the period, the higher will be the rate of interest.
7. Nature of Account: It is of continuous Nature  It is for a fixed period of time except when the fixed deposit receipt is renewed.
8. Facilities: A temporary overdraw facility is given  90% of the amount of fixed deposit can be given as loan.

Answer in brief.

1.State four types of deposits

Solution: 

1) Time Deposits:

Time deposits are called time deposits because they are repaid to the customers after the expiry of decided time.

2) Fixed Deposit:

A fixed deposit account is an account where a fixed amount is kept for a fixed period of time bearing a fixed interest rate. The rate of interest is more as compared to saving bank account and varies with the deposit period.

3. Recurring Deposit:

It is operated by salaried persons and businessmen having a regular income. A certain fixed sum of money is deposited into the account every month. Withdrawal of accumulated amount along with interest is paid after the maturity date.

4. Demand Deposits:

Demand deposits are those which are repaid to customers whenever they demand. That means money can be withdrawn as per the wish of the customer through withdrawal slips, Cheques, ATM cards, online transfer, etc.

2. State four modes of transport.

Modes of transport:

Generally, transportation is carried through various modes such as railways, roads, waterways, and the airway. Modes of transport are as follows:

1) Road Transport:

Roads are means that connect people and places on the surface of the land. It provides all-over connectivity in any terrain as compared to other modes of transport.

Various means of transport are used under road transport such as bullock carts, cycles, rickshaws, buses, cars, etc.

2) Rail Transport:

Transportation of goods and passengers on rail lines through trains is called as rail transport. It occupies an important place inland transport system of our country and is the most dependable mode of transport to carry goods and passengers over a long distances.

3. Air Transport:

Air transport carries goods and passengers through airways by using different aircraft like passenger aircraft, cargo aircraft, helicopters, etc. This is the fastest mode of transport but it does not provide door to door service. Air transport is also a suitable mode in case of an emergency like war, medical, natural calamities, rescue operations, etc. Air transport is classified as domestic transport and international transport.

4) Water Transport:

Water transport refers to the movement of goods and passengers on waterways by using various means like boats, steamers, launches, ships, etc. With the help of these means, goods and passengers are carried to different places, both within as well as outside the country. When the goods and passengers move inside the country, it is known as inland water transport. When the different means of transport are used to carry goods and passengers on the ocean or sea route, it is known as ocean or sea transport.

3. State four life insurance policies?

Solution: 

Types of life insurance policies:

1) Whole Life Policy:

Under this policy, the whole life of a person is insured. The insured cannot receive money from the insurance company until he is alive. The rate of premium is normally low. The money becomes payable on the death of the insured person to the nominee or the legal heir of the deceased policyholder.

2) Endowment Insurance Policy:

Insurance is taken for a specific period under this policy. The sum assured along with bonus is given on the death of the insured to dependents or on the expiry of the specific period, to the insured.

3) Term Insurance Policy:

The term insurance policy is taken for a specific period. Term insurance policy has the lowest premium among all insurance policies. Premium is fixed and does not change during the term of the policy. In case of untimely death, the dependents will receive the benefit amount specified in the term life insurance agreement.

4) Annuity Policy:

The insured has to pay the premium in a lump sum or in installments over a certain period of time. The insured will receive back a specific sum periodically from a specified date onwards, either for life or for a fixed number of years. It is like a pension payment scheme.

4. State any four features of business services?

Features of services:

Solution: 

1) Intangibility:

Service is not a physical product that can be touched or seen. A service can be experienced by the buyer or the receiver. Services lack material form, and therefore they are intangible.

2) Inseparability:

The unique characteristic of services is that the service and the service provider cannot be separated.

The presence of service providers is there at the time of delivering services to customers. In the case of service production and consumption take place at the same time.

3) Inconsistency:

Services are heterogeneous. There can be no perfect standardization of services. Even if the service provider remains the same, the quality of the service may differ from time to time. For example, the same restaurant can give a different experience to two different customers.

4) Perishability:

The production and consumption of services are inseparable because the storage of services is not possible. Being an intangible transaction there can never be an inventory of services. Unlike goods, they cannot be stored for future sale.

5. State money remittance services of the postal department?

Solution: 

Money Remittance Services:

a. Electronic Money Transfer (eMO):

A money order is an order issued by the Post Office for the payment of a sum of money to the person whose name is mentioned in the money order. It is sent through the agency of the Post.

Office. A ‘Payee’ is the person named in the money order as the person to whom the money is to be paid. The advantage of sending money to someone through a money order is that the money is delivered at the house or his place of stay.

b. Instant Money Order (IMO):

India Post presents Instant Money Order (IMO), the instant on-line money transfer service that is instant, convenient, reliable, and affordable. IMO is an instant web-based money transfer service through Post Offices (IMO Centre) in India between two resident individuals in Indian territory. One can transfer money from INR 1,000/- to INR 50,000/from designated IMO Post

Offices. It is simple to send and receive money.

c. International Money Transfer:

Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances are permissible. Department of Posts, Government of India with the Western Union Financial Services, a state of the art International Money transfer Service is now available through the Post Offices in India, which enables instantaneous remittance of money from around 195 countries and territories to India.

Justify the following statement.

  1. Air transport is the fastest mode of transport?

Solution: 

(1) The mode of transport which is operated above the surface of the earth i.e. in the sky through airways is called air transport. For carrying passengers and goods, air transport uses different aircrafts such as passengers aircrafts, cargo aircraft, helicopters, etc.

(2) Among the means of transport available at present, air transport is the fastest and the quickest means of transport. It uses natural ways and no separate construction of routes is required. It is also due to use of modern and advanced technology and highly qualified and professional technician. Thick forests, high mountains, vast deserts and oceans cannot obstruct its speed and air routes.

(3) Air transport adopt shortest route to reach destination. It has faster speed without any disturbance of observing signal system speed. Air transport is useful to provide valuable services in hilly and mountainous areas, in situations like war and areas affected by natural calamities such as floods, cyclones, earthquakes, etc.

2. Communication is essential for the growth of the business

Solution: 

(1) Exchange of ideas, facts, information etc. from one person to another is called communication. It is a process of transfer of information from one place to another or from one person to another with the help of some medium. Means of communication comprise magazines, newspapers, post and telegraphs, radio and television, telephone, internet, e-mail, etc. Communication is essential for growth of business, which include industry, commerce, trade, etc.

(2) The difficulty of distance is effectively solved by various means of communication. Communication helps to transmit business information more quickly among the businessmen. Effective communication facilitates carrying required raw materials and other requirements from the place of their origin or market to the place of their production to facilitate large scale production. The communication also helps to carry finished products from the place of production to the places of consumption as well as market.

(3) Communication helps to make goods and services available wherever they are demanded. It helps to widen the market. Effective communications facilitates the development and growth of domestic and international market and bring prosperity to the country.

(4) Effective communication facilitates the reduction in the cost of production and distribution of goods at low prices which increase their demand and widen market. Increase in demand in turn leads to large scale production and supply. Thus, communication is essential for growth of business.

3. Principle of subrogation is applicable to all contracts of indemnity.

Solution: 

(1) The principle of subrogation is a colliery to the principle of indemnity. According to the principle of subrogation, after the insured is fully compensated for the total loss of the property or goods insured by him, all the rights in such property or goods pass on to the insurer.

(2) Insured person cannot claim any right in the property saved from the damage or loss, once he is fully compensated by the insurer. This is necessary because, if part of the goods or property saved from the fire, accident, damage, floods or cyclone, etc. could fetch any price, the same cannot be retained by the policyholder or insured. In that case he would realise more than the actual loss, which is against the principle of indemnity.

(3) As like the principle of indemnity, the principle of subrogation is applicable to all insurance policies except life insurance policies. In life insurance contracts, the question of indemnity and subrogation does not arise. The insurer cannot indemnify the insured because the loss due to death cannot be determined exactly in terms of money.

(4) In all insurance contracts, except life insurance contract, principle of indemnity and principle of subrogation is applicable. On indemnifying the insured, the insurer can sell the remains of the property damaged and reduce his loss. However, this principle is applicable only if the damaged property has any value after the happening of the event.

4. Warehousing is important.

Solution: 

(1) The term ‘warehousing is generally used to denote all those activities which are concerned with the storage of goods in a godown or warehouse. In modern days, these is a time gap between production of goods and their distribution. Warehousing is essential to hold the stock of goods till they have suitable demand.

(2) Agricultural goods such as rice, wheat, sugar, spices, etc. are produced seasonally but consumed throughout the year. It is necessary to store them in large quantity. Some goods may be required to be stored for conditioning, canning or processing, e.g, oil seeds, first, fruits, etc. Some perishable goods such as eggs, meat, butter, fruits, vegetables, medicines, etc. are preserved in cold storage so that their quality remains as it is.

(3) Warehousing plays an important role in price stabilisation. It helps to protect the goods from theft, deterioration, i.e. future risks. Warehouses nowadays provide facilities like packing, processing, grading, etc. Warehousing is necessary to facilitate dispersion of goods from production centre to different markets.

5. Cash can be withdrawn from ATM at any time.

Solution: 

(1) ATM is the abbreviation of Automated Teller Machine. It is popularly known as All Time Money or Any Time Money. ATM is an electronic cash dispensing machine. It is free standing self service terminal. There is no specific time limit for withdrawals of cash from ATM.

(2) ATM is one of important facilities provided by the bank to its savings account holder. To avail of this facility, bank installs ATM terminals at the places of public utility such as railway stations, shopping malls, airports, post offices, busy streets, etc.

(3) For withdrawal of cash from ATM, every accountholder is given specific code number. By operating this system, the account holder can withdraw the cash up to a specific limit or the quantum of amount available in the account whichever is less. ATM also provides other information like cash deposits, withdrawals, balance in the account, etc.

(4) Under this system, the account holder has cent per cent liquidity of banking funds. ATM avails twenty four hours of service. Hence, the accountholder can withdraw cash any time, i.e. even after banking hours, on holidays, Sundays or in the case of emergency by operating ATM. This facility is available in different parts of the country as well as outside the country.

Attempt the following.

  1. Explain the money remittance services of the post department?

Solution: 

Money Remittance Services:

a. Electronic Money Transfer (eMO):

A money order is an order issued by the Post Office for the payment of a sum of money to the person whose name is mentioned in the money order. It is sent through the agency of the Post.

Office. A ‘Payee’ is the person named in the money order as the person to whom the money is to be paid. The advantage of sending money to someone through a money order is that the money is delivered at the house or his place of stay.

b. Instant Money Order (IMO):

India Post presents Instant Money Order (IMO), the instant on-line money transfer service that is instant, convenient, reliable, and affordable. IMO is an instant web-based money transfer service through Post Offices (IMO Centre) in India between two resident individuals in Indian territory. One can transfer money from INR 1,000/- to INR 50,000/from designated IMO Post

Offices. It is simple to send and receive money.

c. International Money Transfer:

Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances are permissible. Department of Posts, Government of India with the Western Union Financial Services, a state of the art International Money transfer Service is now available through the Post Offices in India, which enables instantaneous remittance of money from around 195 countries and territories to India.

2. Explain marine insurance policies?

Solution: 

It gives protection against the losses caused due to the dangers of the sea. It is a form of an insurance contract covering loss or damage to vessels or to cargo or passengers during marine transportation.

Types of marine insurance Policies:

1) Voyage Policy:

It is a policy in which the subject matter is insured for a specific voyage irrespective of time involved in it. In this case, risk begins only when the ship starts on a voyage.

2) Time Policy:

In this policy, the subject matter is insured for a definite period of time. A time policy cannot be for a period exceeding one year, but it may contain a continuation clause. The continuation clause means that if the voyage is not completed within the specified time, the risk shall be covered until the voyage is completed.

3) Mixed Policy:

This policy is the combination of voyage and time policy. It therefore covers the risk of both, particular voyage and for a specified period of time.

4) Valued Policy:

Under this policy, goods are insured for an agreed value between the insurer and insured at the time of taking policy. This facilitates easy settlements of claims in case of such items where it is difficult to assess the real market value.

5) Blanket Policy:

This policy is taken for the maximum limit of the required amount of protection and full amount of premium is paid in the beginning of the policy. This policy describes the nature of goods insured, specific route, ports and places of voyage. It covers multiple risks on one property or it covers many properties under the policy.

6) Port Risk Policy:

Port risk policy covers all types of risks of a vessel while it is anchored at the port for a particular period of time. This policy is applicable till the departure of the vessel from the port.

7) Composite Policy:

This type of policy is purchased from more than one insurers. The liability of each insurer is separate and distinct. This policy is taken when the amount of insurance is very high.

8) Single Vessel Policy:

This policy is suitable for small ship owner having only one ship or having one ship in different fleets. It covers the risk of one vessel of the insured.

9) Fleet Policy and Block Policy:

In fleet policy, several ships belonging to one owner are insured under the same policy. In block Policy, the cargo owner is protected against damage or loss of cargo in all modes of transport through which his/her cargo is carried i.e. covering all the risks of rail, road, and sea transport etc.

3. Explain types of warehouses?

Solution: 

1) Private Warehouses:

The private warehouses are owned and operated by big manufacturers and merchants to fulfill their own storage needs. Big business firms that need large storage capacity on a regular basis and who can afford the money, construct and maintain their private warehouses.

2) Public Warehouses:

A public warehouse is a specialized business establishment that provides storage facilities to the general public for a certain charge. It may be owned and operated by an individual or a cooperative society. It works under a license from the government in accordance with the prescribed rules and regulations. Public warehouses provide storage facilities to small manufacturers and traders at a low cost. These warehouses are well constructed and guarded round the clock to ensure safe custody of goods. Public warehouses are generally located near the junctions of railways, highways, and waterways.

3) Bonded Warehouses:

Bonded warehouses are licensed by the government to accept imported goods for storage until the payment of customs duty. These warehouses work under the control of customs authorities.

The warehouse keeper is required to give an undertaking or ‘Bond’ that it will not allow the goods to be removed without the consent of the customs authorities. The goods are held in bond and cannot be withdrawn without paying the customs duty.

4) Duty paid Warehouses:

If an importer faces any problem in the transportation of goods, after making payment of duty, then goods can be stored at a duty-paid warehouse. All duty paid warehouses are public warehouses that are available to all importers. Duty paid warehouses help the importer as proper care of goods is taken, processing of goods can be done like sorting, re-packing, etc.

5) Government Warehouses:

These warehouses are owned, managed, and controlled by central and state governments or public authorities. It is difficult for small farmers, businessmen, traders to own a warehouse, so these government warehouses assist them in storing their goods at a nominal charge.

6) Co-operative Warehouses:

These warehouses are owned, managed, and controlled by co-operative societies. They mainly provide warehousing facilities at the most economical rates. These types of warehouses are very useful for farmers and traders and the general public.

7) Cold storage Warehouses:

Cold storage warehouses provide facilities for perishable commodities like fruits, flowers, vegetables, dairy products, etc. In cold storage warehouses, goods are stored and refrigerated at very low temperatures so as to preserve them and use them in the future. International trade has become possible due to these warehouses.

4. Explain the utility function of banks?

Solution: 

Utility Functions:

A commercial bank performs utility functions for the benefits of its clients. It provides certain facilities or products to its clients as follow:

1) Issue of Drafts and Cheques:

A draft /cheque is an order to pay money from one branch of bank to another branch of the same bank or another bank. A bank issue drafts to its account holders as well as non-account holders whereas cheques are issued only to the account holders. Bank charges commission for issuing a bank draft.

2) Locker Facility:

This is a common utility function of any commercial bank. The bank provides locker facilities for the safe custody of valuables, documents, gold ornaments, etc.

3) Project Reports:

A bank may prepare project reports and feasibility studies on behalf of the clients. Project reports enable the business firm to obtain funds from the market and to obtain clearance from government authorities.

4) Gift Cheques:

Banks issue gift cheques and gold coins to account holders as well as to non-account holders.

The gift cheques/ coins can be used by the clients for the purpose of gifting on occasions like weddings, birthdays, etc.

5) Underwriting Services:

A commercial bank may underwrite the issue of securities issued by companies. If the shares are not fully subscribed, the underwriting bank agrees to take up the unsubscribed portion of the securities.

6) Gold related Services:

Nowadays many banks are providing gold services to their customers. Banks are commercially buying and selling gold or gold ornaments from customers on a large scale basis. Some bank also provides advisory services to its customers in terms of gold funds, gold ETF, etc.

5. Explain the modes of traditional communication?

Solution: 

The modes of traditional communications are as follows.

I) Postal Services:

The postal services in India come under the Department of Post and Telegraph which is part of the Ministry of Communication and Information and Technology.

Types of postal services:

1. Mail Services:

Mail services are further classified as follows:

a. Inland Letter: 

Inland letter card is used for transmission within India only. Inland letter ensures the confidentiality of the message.

b. Envelope: 

It enables sending confidential messages as well as enclosures like cheques, photos, resumes, etc.

c. Parcel: 

Parcels of a specified size and weight can be sent across the country as well as outside the country. Anything can be sent in a parcel except those items which are prohibited. Parcels can be insured.

d. Book-Post: 

Printed books, magazines, journals, etc. can be sent through a book post.

2. Specialized Postal Services:

Specialized Postal Services are further classified as follows:

a. Business Post:

Business Post provides complete mailing solutions right from mail preparation to mail delivery.

b. Logistics Post:

Logistics Post provides business customers a cost-effective and efficient solution, which manages the entire value chain from collection to storage to transmission to distribution across the country.

c. Bill Mail Service: 

Communications in the nature of financial statements, bills, monthly account bills, or any such other items of similar nature may be posted by a service provider to customers at least once in 90 days under this service.

3. Money Remittance Services:

Money Remittance Service is further classified as follows:

a. Electronic Money Transfer (eMO):

A money order is an order issued by the Post Office for the payment of a sum of money to the person whose name is mentioned in the money order. It is sent through the agency of the Post Office.

b. Instant Money Order (IMO): 

IMO is an instant web-based money transfer service through Post Offices (IMO Centre) in India between two resident individuals in Indian territory.

c. International Money Transfer:

Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India.

4. Retail Services:

Retail Services are further classified as follows:

a. Retail Post:

Under Retail Post, a range of services is offered including the collection of electricity bills, collection of taxes, collection of other bills and fees for the Government, etc.

b. e-Post: 

Through ePOST, customers can send their messages to any address in India with a combination of electronic transmission and physical delivery through a network of more than 1,55,000 Post Offices.

2. Explain the disadvantages of air transport?

Solution: 

Disadvantages:

1) It does not provide door to door service.

2) It gets heavily affected by adverse weather conditions.

3) It is comparatively slow-moving transport.

4) More investment cost is involved in terms of ports, ships, maintenance, etc.

5) It is subject to the perils of the sea.

Describe the role of transport?

Solution: 

Meaning: 

Transportation is the movement of people, animals, and goods from one location to another location or it can be defined as a means of carrying goods and people from one place to another place.

Modes of transport: 

Generally, transportation is carried through various modes such as railways, roads, waterways, and the airway. Modes of transport are as follows:

1) Road Transport:

Roads are means that connect people and places on the surface of the land. It provides all-over connectivity in any terrain as compared to other modes of transport.

Various means of transport are used under road transport such as bullock carts, cycles, rickshaws, buses, cars, etc.

2) Rail Transport:

Transportation of goods and passengers on rail lines through trains is called as rail transport. It occupies an important place inland transport system of our country and is the most dependable mode of transport to carry goods and passengers over long distances.

3. Air Transport:

Air transport carries goods and passengers through airways by using different aircraft like passenger aircraft, cargo aircraft, helicopters, etc. This is the fastest mode of transport but it does not provide door to door service. Air transport is also a suitable mode in case of an emergency like war, medical, natural calamities, rescue operations, etc. Air transport is classified as domestic transport and international transport.

4) Water Transport:

Water transport refers to the movement of goods and passengers on waterways by using various means like boats, steamers, launches, ships, etc. With the help of these means, goods and passengers are carried to different places, both within as well as outside the country. When the goods and passengers move inside the country, it is known as inland water transport. When the different means of transport are used to carry goods and passengers on the ocean or sea route, it is known as ocean or sea transport.

5) Monorail and Metro:

These are the types of rapid transit systems found in urban areas. These types of transport are energy efficient and less polluting too. A monorail is a railway in which the track consists of a single rail or a beam. The term is also used to describe the beam of the system, or the trains traveling on such a beam or track.

6) Ropeway:

Ropeway refers to a mode of transport that connects two places on the hills or across a valley or river. In ropeway transport, trolleys move on wheels connected to a rope and are used for carrying passengers or goods.

7) Pipeline Transport:

Pipeline transport sends goods through a pipe, most commonly liquid and gases. Short-distance systems exist for sewage, slurry, or water while long-distance networks are used for petroleum and natural gas.

What are the functions of warehouses?

Solution: 

A warehouse is defined as “an establishment for the storage or accumulation of goods.”

Warehousing refers to the storage of goods and consists of all those activities which are connected with the storage and preservation of goods. It is a means of storing goods.

Functions of Warehouses:

1) Storage:

This is the basic function of warehousing. Surplus commodities that are not needed immediately can be stored in warehouses. They can be supplied as and when needed by the customers.

2) Price Stabilization:

Warehouses play an important role in the process of price stabilization. It is achieved by the creation of time utility by warehousing. In warehouses, a usually large stock of goods is kept.

3) Risk bearing:

When the goods are stored in warehouses they are exposed to many risks in the form of theft, deterioration, fire, etc. Warehouses are constructed in such a way that they minimize these risks.

4) Financing:

Loans can be raised from the warehouse keeper or from financial institutions against the goods stored by the owner. Goods act as security for the warehouse keeper or for financial institutions. In this manner, warehousing acts as a source of finance for the businessmen for meeting business operations.

5) Grading and Packing:

Warehouses nowadays provide the facilities of packing, processing, and grading of goods. Goods can be packed in convenient sizes as per the instructions of the owner.

6) Transportation:

Warehouses can provide transportation facility to bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery at the request of the owner.

7) Time and Place Utility:

Warehouses create time utility by preserving the goods until they are demanded. It also creates place utility by providing the goods at the place, where they are required.

8) Processing:

Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable. e.g. Paddy is polished, fruits are ripened, etc. Sometimes warehouses undertake such activities on behalf of the owners.

Answer the following.

  1. What is insurance? Explain the principles of insurance?

Solution: 

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The insured has to pay a certain fixed sum of money on a timely basis to the insurer.

Principles of Insurance:

1. Principle of Utmost good faith:

In all types of insurance contracts, both parties must have the utmost good faith towards each other. The insurer and insured must disclose all material facts clearly, completely, and correctly. Failure to provide complete, correct, and clear information may lead to a non-settlement of the claim.

2. Principle of Insurable interest:

Insurable interest means some financial interest in the subject matter. The insured must have an insurable interest in the subject matter of insurance. Insurable interest is applicable to all insurance contracts.

3. Principle of Indemnity:

Indemnity means a guarantee or assurance to put the insured in the same financial position in which he was immediately prior to the happening of the uncertain event. Under this principle, the insurer agrees to compensate the insured for the actual loss suffered. The amount of actual compensation is limited to the amount assured or the loss, whichever is less. This principle is applicable to fire, marine, and general insurance. It is not applicable to life insurance as loss of life can never be measured in monetary terms.

4. Principle of Subrogation:

This principle is applicable to all contracts of indemnity. As per this principle, after the insured is compensated for the loss due to damage of the property insured, then the right of ownership of such property passes on to the insurer. This principle is applicable only when the damaged property has any value after the event causing the damage.

5. Principle of Contribution:

This principle is applicable to all contracts of indemnity where the insured has taken out more than one policy for the same risk or subject matter. Under this principle, the insured can claim the compensation only to the extent of actual loss either from one insurer or all the insurers.

6. Principle of Mitigation of loss:

Insured must always try to minimize the loss of the property, in case of uncertain events. The insured must take all possible measures and necessary steps to control and reduce losses.

Hence, it is the responsibility of the insured to protect the property and avoid loss.

7. Principle of Causa-Proxima:

The principle of causa Proxima means, when a loss is caused by more than one cause, then the proximate cause of a loss should be taken into consideration to decide the liability of the insurer. The property is insured against some causes and not against all causes, in such a case, the proximate cause of loss is to be found. If the proximate cause is the one which is insured against, the insurance company is bound to pay compensation and vice versa.

2. Define bank. Explain Different types of banks?

Solution: 

A bank is a financial institution which deals with deposits and advances and other related services. Bank provides various services related to money or financial requirements of consumers.

1) Central Bank :

The central bank is the apex financial institution in the banking industry in the country. Every country has its own central bank. In India, The Reserve Bank of India (RBI) is the central bank. The RBI was established in 1945 under the Reserve Bank of India Act, 1944. Some functions of RBI are as follows:

i) Frames monetary policy

ii) Issues currency notes

iii) Acts as a banker to the Government

iv) Acts as a banker’s bank to commercial and other banks in India.

2) Commercial Bank:

Commercial banks play an important role in the economic and social development of a country.

Commercial banks perform important functions such as:

Primary Functions i.e. accepting of deposits and lending of money and Secondary Functions i.e. agency functions and utility functions. In India, commercial banks are divided into three groups:

a) Public sector banks where the majority of the capital is held by the government such as Bank of India, State Bank of India etc.

b) Private sector banks are owned by a group of individuals such as AXIS bank, HDFC bank, etc.

c) Foreign banks are those banks that are established outside India but these banks have branches in India such as Citi Bank, HSBC, Standard Chartered, etc.

3) Co-operative Bank:

In India, co-operative banks are registered under Indian Co-operatives Societies Act and regulated under the Banking Regulation Act. Co-operative banks are popular in semi-urban and rural areas. The main aim of the co-operative banks is to provide credit to economically backward people, farmers, and small scale units. Generally, the co-operative bank works at three different levels:

a) Primary Credit Societies:

Primary Credit Co-operative society’s work at the village level. They collect deposits from members and the common public.

b) District Central Co-operative Bank:

These banks operate at the district level. They obtain deposits from the public at the district level and also get funds from the State Co-operative Bank for the purpose of lending.

c) State Co-operative Bank:

This bank operates at the state level. They provide funds to the central co-operative banks and primary credit societies as required.

4) Industrial Development Banks:

These are financial institutions that provide medium and long term funds to the business firms Examples of development bank are Industrial Finance Corporation of India (IFCI), State Finance Corporation (SFC), Maharashtra State Finance Corporation (MSFC), etc. Some functions of the development bank are as follows:

i) Provision of medium and long term funds to business units for the purpose of expansion and modernization.

ii) Underwriting of shares issued by public limited companies.

iii) Purchase of debentures and bonds.

5) Exchange Banks:

The exchange banks as well as large commercial banks facilitate foreign exchange transactions. Examples of exchange banks are Barclays Bank, Bank of Tokyo, etc. Some functions of the exchange bank are as follows:

i) Financing foreign trade transactions.

ii) Issue of letter of credit (LC)

iii) Discounting of bills of exchange.

iv) Remittances of dividends, interests, and profits, etc.

6) Regional Rural Bank:

Regional Rural Banks (RRBs) were established in 1975. These banks are sponsored by large public sector banks. The capital of RRB is contributed by Central Government 50%, State

Government 15% and Sponsored Banks 35%. RRBs mobilize deposits primarily from rural and semi-urban areas and provide loans and advances mostly to small and marginal farmers, agricultural laborers, and rural artisans.

7) Savings Bank:

The main objective of the savings banks is to encourage savings of the people, especially in rural areas. Examples of such banks include postal saving banks, commercial banks, and cooperatives banks.

8) Investment Bank:

These banks provide financial and advisory assistance to their customers. Their clients generally include business firms and government organizations. Investment banks facilitate mergers and acquisitions by undertaking research and providing advice on investment decisions. Generally, investment banks do not directly deal with the general public.

9) Specialized Banks:

These banks cater to the requirements and provide overall support for setting up a business in specific areas.

i) Export and Import Bank (EXIM): This bank provides financial assistance to exporters and importers.

ii) Small Industries Development Bank of India (SIDBI): This bank provides financing and development of the micro, small, and medium enterprise (MSME) sector.

iii) National Bank for Agriculture and Rural Development (NABARD): It is an apex institution for financing agricultural and rural sectors. NABARD provides both short term and long term credit through regional rural banks.

3. What is a warehouse? Explain its different functions.

Solution: 

A warehouse is defined as “an establishment for the storage or accumulation of goods.”

Warehousing refers to the storage of goods and consists of all those activities which are connected with the storage and preservation of goods. It is a means of storing goods.

Functions of Warehouses:

1) Storage:

This is the basic function of warehousing. Surplus commodities that are not needed immediately can be stored in warehouses. They can be supplied as and when needed by the customers.

2) Price Stabilization:

Warehouses play an important role in the process of price stabilization. It is achieved by the creation of time utility by warehousing. In warehouses, usually large stock of goods is kept.

3) Risk bearing:

When the goods are stored in warehouses they are exposed to many risks in the form of theft, deterioration, fire, etc. Warehouses are constructed in such a way that they minimize these risks.

4) Financing:

Loans can be raised from the warehouse keeper or from financial institutions against the goods stored by the owner. Goods act as security for the warehouse keeper or for financial institutions. In this manner, warehousing acts as a source of finance for the businessmen for meeting business operations.

5) Grading and Packing:

Warehouses nowadays provide the facilities of packing, processing, and grading of goods. Goods can be packed in convenient sizes as per the instructions of the owner.

6) Transportation:

Warehouses can provide transportation facility to bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery at the request of the owner.

7) Time and Place Utility:

Warehouses create time utility by preserving the goods until they are demanded. It also creates place utility by providing the goods at the place, where they are required.

8) Processing:

Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable. e.g. Paddy is polished, fruits are ripened, etc. Sometimes warehouses undertake such activities on behalf of the owners.

4. What are Services? Explain in detail different business services.

Solution: 

Services are intangible in nature; they are neither manufactured, transported nor stocked. Services cannot be stored for future use hence they are produced and consumed simultaneously. They are intangible in nature, heterogeneous, inseparable, inconsistent, perishable in nature, and require consumer participation.

Types of Business Services:

There are various types of services depending upon their nature and purpose. Some of the important services are as follows.

1. Banking: 

A bank is a financial institution which deals with deposits and advances and other related

services. Bank provides various services related to money or financial requirements of consumers.

2. Insurance: 

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The insured has to pay a certain fixed sum of money on a *timely basis to the insurer.

3. Transportation: 

Transportation is the movement of people, animals, and goods from one location to another location or it can be defined as a means of carrying goods and people from one place to another place. Generally, transportation is carried through various modes such as railways, roads, waterways, and the airway.

4. Warehousing: 

Warehousing refers to the storage of goods and consists of all those activities which are connected with the storage and preservation of goods. It is a means of storing goods. Warehousing can be defined as a group of activities connected with the storing and preserving of stored goods from the time of production until the time of consumption.

5. Communication: 

The process of passing any information from one person to another with the help of some medium is termed as communication. Communication is a very simple process where the message is being transferred from a sender to the receiver. The receiver after receiving the message understands it in the desired form and then acts accordingly.

5. What is communication? Explain in detail various types of communication.

Solution: 

The process of passing any information from one person to another with the help of some medium is termed as communication. Communication is a very simple process where a message is being transferred from a sender to the receiver. The receiver after receiving the message understands it in the desired form and then acts accordingly.

The types of communication

Following are various types of communication:

I) Postal Services

II) Modem means of communication

I) Postal Services:

The postal services in India come under the Department of Post and Telegraph which is part of the Ministry of Communication and Information and Technology.

Types of postal services:

1. Mail Services:

Mail services are further classified as follows:

a. Inland Letter: 

Inland letter card is used for transmission within India only. Inland letter ensures the confidentiality of the message.

b. Envelope: 

It enables sending confidential messages as well as enclosures like cheques, photos, resumes, etc.

c. Parcel: 

Parcels of a specified size and weight can be sent across the country as well as outside the country. Anything can be sent in a parcel except those items which are prohibited. Parcels can be insured.

d. Book-Post: 

Printed books, magazines, journals, etc. can be sent through book posts.

2. Specialized Postal Services:

Specialized Postal Services are further classified as follows:

a. Business Post:

Business Post provides complete mailing solutions right from mail preparation to mail delivery.

b. Logistics Post:

Logistics Post provides business customers a cost-effective and efficient solution, which manages the entire value chain from collection to storage to transmission to distribution across the country.

c. Bill Mail Service: 

Communications in the nature of financial statements, bills, monthly account bills, or any such other items of similar nature may be posted by a service provider to customers at least once in 90 days under this service.

3. Money Remittance Services:

Money Remittance Service is further classified as follows:

a. Electronic Money Transfer (eMO):

A money order is an order issued by the Post Office for the payment of a sum of money to the person whose name is mentioned in the money order. It is sent through the agency of the PostOffice.

b. Instant Money Order (IMO): 

IMO is an instant web-based money transfer service through Post Offices (IMO Centre) in India between two resident individuals in Indian territory.

c. International Money Transfer:

Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India.

4. Retail Services:

Retail Services are further classified as follows:

a. Retail Post:

Under Retail Post, a range of services is offered including the collection of electricity bills, collection of taxes, collection of other bills and fees for the Government, etc.

b. e-Post: 

Through ePOST, customers can send their messages to any address in India with a combination of electronic transmission and physical delivery through a network of more than 1,55,000 Post Offices.

II) Modern means of communication:

a. Courier Service:

An individual or a company responsible for the exchange of items between two or more parties is known as courier service. Courier services are usually employed by· a company and they charge a flat rate to the party using the courier service. Courier s·ervices are different from ordinary mail services by features such as speed, security, tracking, signature, and swift delivery times.

b. Internet: 

It is a network of networks that consists of private, public, academic, business, and government networks of local to global scope, linked by a broad array of electronic, wireless, and services, such as the inter-linked hypertext documents and applications of the World Wide Web (WWW), electronic mail and file sharing.

c. Email:

Electronic mail (email or e-mail) is a method of exchanging mail between people using electronic devices. Today’s email systems are based on a store-and-forward model.

7. What is road transport? Explain the advantages and disadvantages?

Solution: 

Roads are means that connect people and places on the surface of the land. It provides all-over connectivity in any terrain as compared to other modes of transport. India has a network of village roads, district roads, state highways, and national highways which form the economic backbone of the country. In India, the Ministry of Road Transport and Highways (MoRTH) looks after the development of surface transport throughout the country.

Advantages:

1) It is a cheap mode of transport compared to other modes of transport.

2) Perishable goods can be transported at a faster speed by road carriers over a short distance.

3) It is a flexible mode of transport as loading and unloading are possible at any destination.

4) It provides door to door service. Also, it functions as a feeder transport to other modes of transport.

5) It helps people to travel and carry goods from one place to another place where any other mode of transport is not available.

Disadvantages:

1) Due to limited carrying, capacity road transport is not economical for long-distance transportation.

2) Transportation of heavy and bulky goods through road transport involves high costs.

3) Road transport is affected by adverse weather conditions such as floods, rain, landslides, etc.

4) There is a possibility of road accidents which are common.

5) It causes pollution due to the emission of gases which affect the health of people.

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